What makes projects bankable and what financing mechanisms exist? - Understanding the specifics of project financing with a focus on the GCF, relevant financing instruments and implications for project development
Given the fact that the GCF, unlike other climate funds does not merely provide grants but offers a variety of financing instruments, including debt, equity capital and risk guarantees, this module presents the perspective of financial institutions and introduces the different instruments for financing a project (or programme, for that matter). It explores the issue of bankability and highlights the view of financiers who are usually looking for the right balance of risk and return for their investment.
Subsequent to this overall introduction, the module leads over to a general theoretical section on key financing instruments and their respective features, and uses different GCF project examples to highlight how these instruments are used in project financing in practice. In order to further deepen the understanding on financing, an in-depth example from the coffee sector has been included in the module.